Saturday, June 13, 2015

ObamaCare: King v. Burwell -- More than Tax Credits

As the Obama administration nervously waits for a Supreme Court decision in King v. Burwell, there is another aspect to the case that has nothing to do with ObamaCare or tax subsidies. King v. Burwell tells the story of a president who overstepped the limits of his authority by unilaterally changing key provisions of the law without Congressional approval. It’s also a story of an administration’s repeated efforts to interfere in Congressional inquiries to determine whether IRS and Treasury officials were pressured into promulgating rules that are contrary to statutory text and favorable to the administration’s political objectives. 

The issues raised in King v. Burwell weren’t created in a vacuum -- they are the consequence of a poorly written law that was hastily passed through the reconciliation process. A Supreme Court ruling in favor of plaintiffs would be a strong rebuke for President Obama, who repeatedly altered key provisions of the law. Even if the Supreme Court rules against plaintiffs, the story does not end, for there are other rules that are also contrary to the plain language of the law.

Almost immediately after Obamacare was signed into law, the Obama administration began to eliminate, postpone, and alter key provisions without Congressional approval. The first to go was the CLASS Act, a provision that the Congressional Budget Office relied on to justify the cost of the law. Next were the SHOPs, which were supposed to level the playing field for small business owners by expanding their options to purchase affordable and quality healthcare plans for employees. Next, and with no prior warning, President Obama delayed implementation of the Employer Mandate, but he did not do the same for the Individual Mandate. Other provisions, including COOPs and the Navigator program, fell to the wayside.  

Once the rulemaking process began, some members of Congress became concerned that department officials were not interpreting the law’s plain meaning. When the IRS issued its proposed rule for the tax credits in 2011, it was met with strong opposition from Congressional members including Senator Orrin Hatch, then the ranking member of the Senate Finance Committee. Hatch questioned the legality of the proposed rule and in December 2011 sent a letter to the Department of the Treasury asking for all of the documents related to the development of the rule and the reasoning behind it. To date, the IRS and the Treasury Department have not responded to Hatch’s request. 
In September 2014, Darrell Issa, then Chairman of the House Oversight Committee, issued a Congressional subpoena to the IRS and Treasury requesting the same documents. The subpoena was ignored. After Issa moved to compel production of the documents, the Obama administration intervened and blocked the request. To date, no documents have been produced. 

Via: American Thinker


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